New Pyjamas charity fights NHS moves to control fund

Bosses at NHS Lothian want to play a "central role" in the development of the appeal, which is being investigated by charity watchdogs after spending 500,000 and raising just 60,000.

But the Sick Kids Friends Foundation (SKFF) is determined to maintain its independence following crisis talks with health chiefs.

One source close to the charity said: "There is no way NHS Lothian will take the campaign out of SKFF's hands.

"They may well want to be more involved, which is understandable, but I am almost certain the SKFF will retain responsibility."

Concerns have been raised about the SKFF's level of supervision of the New Pyjamas appeal – whose chairman Graeme Millar has resigned and director Elaine McGonigle has been suspended – but trustees have vowed to turn things around.

Another source said: "Aside from the New Pyjamas, the SKFF has a pretty good, straight-up record," adding that the trustees were "horrified" about plans to intervene.

"They want to turn it round and I wouldn't agree that taking it away is going to improve anything."

It has been suggested that NHS Lothian could take control of the appeal – which is due to run for three years – in the way Great Ormond Street Hospital in London co-ordinates its own charity fundraising.

Health chiefs do not want the appeal's troubles to derail the fundraising which is key to their vision for a new home for the Sick Kids at Little France.

Health board chairman Dr Charles Winstanley says NHS Lothian "intends to have a central role in the future development of the fundraising campaign". He said: "Delivering a successful fundraising campaign is what's important now. We want to work in partnership with the Sick Kids Friends Foundation to help us achieve our goal of building a world-class hospital for children and young people."

Ms McGonigle has been suspended amid concerns about the amount the appeal has spent without securing major donations.

It was reported today that she left a previous job with the Princess Royal Trust for Carers "under a cloud" after clashing with senior figures over fundraising strategies, though an SKFF spokesman said it had received a reference from the charity when she was hired.

The official reason she was given for her suspension from the SKFF was talking a wealthy supporter out of making a 100,000 donation, after warning him of her concerns about planned changes to the management of the campaign.

Friends and former colleagues have since rallied round to support her, saying she was a "first-class fundraiser" and that the appeal had never expected to secure major funding before the summer.

Lothians MSP and former GP Dr Ian McKee said he was not convinced that the SKFF should relinquish control of the project.

"That's in no-one's interests," he said. "I think they should work more closely, yes, but people would find it strange if the NHS were to go around collecting money. Where would it stop?

"It has to be up to the SKFF to take it forward."